Why does this need to be a blockchain project? Firms like fundrise already do this and have much lower expense ratios...
Why blockchain? transparency, liquidity and global access. Read more on
https://medium.com/@real_token/the-need-for-real-123d970ba812Much lower ? No. Much more expensive. Fundrise charges 1% per year on invested amount plus 2% setup fee. REAL charges 0% per year on invested amount and 0% setup fee. REAL just takes a comission of profits, ending up way cheaper.
That is really deceptive, you are allocating 20% of the token supply to founders, your fees are irrelevant, the value of the portfolio is diluted by at least 20% - meaning, on the backside, investors are giving away 20% of the value of the portfolio to you, that is much higher than a 1% annual fee.
That is also not correct Mike! This is not a fund and tokens are not shares.
REAL is a crowdfunding platform that will distribute 90% of net profits to its users.
Tokens are the internal currency that will be used to invest into properties.
Let me know if you have more doubts,
Thanks
Melissa
So, the dividends from cashflows will be distributed to token holders proportional to the number of REAL they own and invest in properties?
Yes. Every user will be able to choose different properties and build a custom portfolio.
Got it, so you are diluting the supply by 20% to compensate founders plus 10% out of the expenses before posting the dividends, again, this seems very expensive. In exchange, there are none of the protections you get with a traditional REIT. Do token holders have any rights to the deeds of the properties explicitly of would we have to rely on REAL to facilitate recovery to token holders in case liquidation happens? (IE, who owns the real estate itself, what explicit legal rights do token holders have?)
We will dilute the supply by 20% in 6-24 months time (our tokens are locked with vesting and cliff).
Our goal is that by then the Token value will have grown way more than 20% therefore it will end up being a great opportunity. That can't happen in non crypto real estate crowdfunding sites.
We will offer the same rights and guarantees as REIT do, plus everything will be recorded in the blockchain and function with smart contracts. Not only a third party audit.
Melissa